Hi Elmat, Seasoned realization -
The world is rapidly on its way to couple with the Japanese experience, hopefully not lasting the decade elspsed time and file for separation before we call it quits.
What else can governments do, democratically elected or otherwise staying in power by popular tolerance or coercion?
- get rid of social security obligations
- raising taxes
- mothball the 10-year benchmark national bonds
- cancel previous debt owed by defaulting
- apply negative real, and then, eventually less than zero nominal interest rate
- outlaw the holding of cash
and for what? Making sure that no saver will ever save again, all praying at the altar of consumption, putting down a deposit for an SUV?
The governments are in a struggle with time, marked not by the equation of motion of moon and planets, but by the steady hand of demographics, gradually cornered in a debt-ly and saving-less valley, at the low end of a cracked dam, holding a deluge of claims, and needs.
The death rattle of Japan is for all to hear, for those who care to listen.
So, if I were in the shoes of an aging Japanese, moving ten years back through the equation time, what should I have invested in order to secure what should be mine, by work, but unprotected by law, and not by right.
Fractal scale up, the world is deflating now as Japan has been, and the indices are only held in place by bits of sticky paper issued by the same folks that got us to where we are now, at the precipice, staring down, guessing at the possible depth, not helped by the lack of light, outline, and therefore reference, and realizing the possible harm from plunge.
Deflation, simply put, is where everything, including possibly gold, gets progressively and predictably cheaper, until one fine day, everything and gold inflates. More on deflation …
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Chugs, Jay |
